IBHJ vs VYM
iShares iBonds 2030 Term High Yield and Income ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | IBHJ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.04% | |
| AUM | $176M | $81.6B | |
| Dividend Yield | 6.69% | 2.24% | |
| Holdings | 299 | 616 | |
| YTD Return | -0.94% | +14.66% | |
| 1Y Return | +1.90% | +22.16% | |
| 3Y Return (annualized) | +7.65% | +18.72% | |
| 5Y Return (annualized) | - | +12.18% | |
| Volatility (annualized) | 5.0% | 14.6% | |
| Max Drawdown | -4.9% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 21, 2023 | Nov 10, 2006 |
IBHJ vs VYM Performance
iShares iBonds 2030 Term High Yield and Income ETF (IBHJ) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year IBHJ returned +1.90% while VYM returned +22.16%. Year to date, IBHJ is down 0.94% versus a gain of 14.66% for VYM.
Over three years, IBHJ compounded at +7.65% per year against +18.72% for VYM. Across the full 3-year window we track, IBHJ has the edge at +7.43% annualized vs +7.01%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 5.0% for IBHJ. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -4.9% for IBHJ and -58.8% for VYM. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IBHJ charges 0.35% per year while VYM charges 0.04%. On a $10,000 position that is $35 vs $4 annually, a gap of $31 per year that compounds over a long holding period. On income, IBHJ currently yields 6.69% against 2.24% for VYM.
Holdings Overlap
IBHJ and VYM share 0 holdings out of 859 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IBHJ or VYM?
IBHJ has an expense ratio of 0.35% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $31 per year of difference.
Which performed better, IBHJ or VYM?
Over the past year IBHJ returned +1.90% vs +22.16% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (3 years), IBHJ annualized +7.43% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, IBHJ or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 5.0% for IBHJ. Worst drawdown: IBHJ -4.9% vs VYM -58.8%.
Should I hold both IBHJ and VYM?
IBHJ and VYM have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBHJ and VYM?
IBHJ and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 859 unique securities.
Which pays a higher dividend, IBHJ or VYM?
IBHJ yields 6.69% while VYM yields 2.24%, so IBHJ currently pays the higher dividend yield.
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